Taiheiyo Cement Corporation (Headquartered in Bunkyo-ku, Tokyo; Masafumi Fushihara, President and Representative Director, hereinafter, Taiheiyo Cement) has decided to establish a new cement terminal on Luzon, the largest cement consumption area in the Philippines, by its consolidated subsidiary, Taiheiyo Cement Philippines, Inc. (Headquartered in Cebu, Philippines, hereinafter, TCPI).
Cement demand in the Philippines has been growing in line with its economic growth and increasing construction investment. TCPI estimates demand to have increased by approximately 30% from 2015 to 2019, reaching 32 million tons. Despite demand shrinking in 2020 due to the effects of the coronavirus pandemic, it is expected to rise again with strong GDP recovery, estimated to be +5.6% in 2023*1, and the massive infrastructure investment program "Build Better More" of President Marcos's administration.
TCPI's strategy to advance the company's presence in the Philippines market targets reaching an annual sales volume of 5 million tons and a sales share of 10% in the 2030's. Currently, TCPI is upgrading the cement production line to introduce the most advanced technology in the world, and the cement production capacity will be increased to 3 million tons per year after the start of commercial operation from May 2024. Following this initiative, we will build a new cement distribution terminal in Calaca city, Batangas province in southern Luzon, in order to accelerate progress toward achieving TCPI's targets.
The new cement terminal will have a capability to supply 700,000 tons of cement annually to the Luzon region, the largest cement consumption area in the Philippines. Utilizing this terminal, the company plans to transport and sell blended cement, for which demand has been increasing in recent years, based on Taiheiyo's strategy to reduce CO2 emissions per unit of production. At the same time, TCPI is considering strengthening their marine logistics system with an eye on the future of our business in the Philippines and expect a total investment of approximately JPY10 billion.
Under the"Carbon Neutral Strategy 2050", Taiheiyo Cement Group is working to achieve carbon neutrality throughout the supply chain by 2050. By continuing to demonstrate the group's comprehensive strengths and actively focusing not only on economic development but on reducing environmental impact, Taiheiyo Cement Group aims to become a corporate group that provides safety and security to society in the Pacific Rim.